The ratios that indicate a strong capacity for a company are Low debt to equity ratio and High debt service coverage ratio.
Debt service coverage ratio is an example of a coverage ratio. It measures the solvency of a firm. A high ratio indicates greater solvency when compared with a low ratio.
Debt to equity ratio is an example of a debt ratio. A high debt to equity ratio indicates higher financial risk and weaker solvency. Thus, a lower ratio is more desirable.
To learn more about financial ratios, please check: https://brainly.com/question/14171325
